'Cutting red tape in India key to Swiss investments': Helene Budliger Artieda
Helene Budliger Artieda
has said.
She also ruled out any impact of the withdrawal of most favoured nation treatment for India by Switzerland under the bilateral tax treaty on investment flows under the trade agreement with European Free Trade Association (EFTA).
"We need to have the best framework conditions (for the $100 billion commitment on investment) and this was part of the business roundtable meeting in the presence of minister Goyal. It will be important that red tape be cut as much as possible," she said.
Even in Switzerland, companies complain about too much red tape, she added.
"It will be very important that India creates a good framework for Swiss investments to come in," she told reporters after her meeting with commerce and industry minister Piyush Goyal on Tuesday.
Live Events
India and the EFTA, which includes Switzerland, Norway, Iceland and Liechtenstein, signed a free trade agreement on March 10, 2024, which is expected to come into force in a few months. It provides for an investment commitment of $100 billion in 15 years from the grouping in lieu of customs duty concessions. Goyal is on a four-day visit to Switzerland and Sweden.
On the issue of the Swiss government suspending the MFN clause in the
Double Taxation Avoidance Agreement
(DTAA) between India and Switzerland, Artieda said there has been some misunderstanding on this.
"I think it's important to know that both India and Switzerland share a double taxation treaty and that treaty is valid and that means there will not be any issue," she said.
In a statement in December 2024, the Swiss government announced the suspension of the MFN clause in the DTAA between India and Switzerland, potentially impacting
Swiss investments in India
and leading to higher taxes on Indian companies operating in the European nation.
She noted that the trade agreement will help increase exports of Swiss watches and chocolates to India as companies will have the advantage of preferred access.
New Delhi is also in talks with the European Union for a comprehensive free trade agreement.
(The correspondent is in Switzerland at the invitation of the ministry of commerce and industry.)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
25 minutes ago
- Indian Express
Textile industry seeks short term cash flow support to ease US tariff pain
The labour intensive-textile industry has asked the government for immediate cash support and moratorium on repayment of loans to endure the shock of steep 50 per cent US tariffs that could lead to job losses in industry. The industry during a key meeting at the Ministry of Textiles on Tuesday also sought a fast-tracking of free trade agreement (FTA) negotiations with the EU that could act as a cushion for losses in the US market. 'The industry is seeking support from the government to at least absorb 20-25 per cent tariffs hit from the US so that they can retain the market share as US buyers have stopped placing fresh orders and are asking the Indian exporters to absorb the tariffs,' a source told The Indian Express The apparel manufacturers have asked for faster implementation of the UK deal and fast tracking of EU trade deal that could ease the pain of US tariffs in the medium term, the source said. 'The manufacturers have pitched for re-introduction of Interest Equalization scheme and a focused textile market scheme,' the person quoted above said. The meeting, chaired by Union Textiles Minister Giriraj Singh, was called to discuss the challenges being faced by exporters in their order flows, especially amid the widening tariff differentials with other competing Asian countries after the recent imposition of secondary tariffs by the US on India. The Ministry of Textiles said in a statement that it has announced the constitution of four committees, comprising industry representatives, to submit time-bound recommendations on fiscal and ease-of-doing-business measures, structural reforms in the textile value chain, enhancing cost competitiveness and innovation, and achieving a target of $100 billion in exports by 2030. With the US being India's largest export market for the labour-intensive textile and apparel industry, textile exporters are under stress after the hike in import tariff to 25 per cent from August 7 by the Trump administration, which is set to rise further to 50 per cent on August 27. Textile and apparel exporters have been asking for support from the government as their orders have been hit with buyers either asking them to share the tariff hike burden or pausing the orders till further clarity emerges about the trade deal negotiations between India and the US. One of the major concerns raised by textile and apparel exporters in their representations to the government has been about a disruption in their cash flow with a reduction in orders by buyers from the US, officials said. 'Exporters are asking for sops. They are asking for soft loans or interest subvention schemes or focused market schemes. Their concern is that they should get cash in hand,' an official told The Indian Express. Exporters are hoping that the tariff hike is temporary and they are able to retain the orders as buyers are already shifting to other countries with lower tariffs such as Vietnam and Bangladesh, with India's 25 per cent reciprocal tariff exceeding those applicable to other competing Asian countries, except China. If the higher levies continue, there's also a worry in policy circles that the distress in the textiles and apparels sector could result in job losses. The government is engaging continuously with exporters to understand the evolving situation. 'Exporters have been communicating their issues. The government is taking their feedback and will provide the necessary support to them,' another official said. The Ministry of Finance has estimated that more than half of the country's merchandise exports to the US will be subject to the higher reciprocal tariff. The US is a key market for Indian Ready-Made Garments (RMG) exports; its share in India's total garment exports in 2024 stood at 33 per cent, as per the Apparel Export Promotion Council (AEPC). Home textiles and carpets are also significant export-oriented sectors, with exports accounting for 70-75 per cent and 65-70 per cent of total sales, respectively, for these sectors. Of this, the US accounts for 60 per cent of exports for home textiles and 50 per cent of exports for carpets. US President Donald Trump had announced a 25 per cent tariff on Indian goods in a post on social media platform Truth Social on July 30, with an additional but unspecified 'penalty' for importing energy and defence items from Russia. On August 6, the penalty was clarified to be an additional 25 per cent tariff that will be effective from August 27.
NDTV
25 minutes ago
- NDTV
They Lack 'Expertise' In Handling India: Expert On US' Op Sindoor Response
The way the US treated India at the end of Operation Sindoor shows a lack of expertise on their part in terms of understanding how to act towards India, Max Abrahms, an international security professor and author on terrorist dynamics said. In an interview with ANI, Abrahms said that India does not feel respected by the US in its treatment, "Pakistan became very vocally supportive of the US role and recommended a Nobel Prize for Trump, whereas India really chipped at the level of US involvement and especially Trump claiming so much credit for the course of the short war." He explained how even though India is the largest democracy in the world, with the largest population and will soon be the third largest economy, the Trump administration does not regard India as a "fully independent country on the world stage". He also said that because of how the US is treating India, it seems like it does not fully appreciate its contributions. "I cannot really say with any level of confidence exactly what the Trump administration's role was", Abrahms said regarding Trump's claim of being involved in stopping the conflict between the two South-Asian nations. He stated that India-US relations are dependent on the US-Russia meeting, as Russian oil is the major bone of contention between US and India, adding, "We need to be a little bit patient in terms of the meetings between Trump and Putin". Highlighting how important it is for the US to mend its relations in the Indo-Pacific in order to control China, he said, "But you know the China threat isn't going away and the United States, especially under this administration, sees China as a threat that needs to be contained. And that is going to require the US to mend relations with allies in the Indo-Pacific region", adding that this aspect makes him "optimistic" about moving forward. He pointed out that the US cannot become isolated or have asymmetrical trade relations with other countries as we live in a globalised world. He said, "If something's bad for the Indian economy, it's also not good for the US economy" and noted that it is in the US interest for the Indian economy to grow. Warning about how "dangerous" Trump's 'America First' policy is, he said, "That's a dangerous path to go down. It can have not just a negative effect on the financial system, but also in terms of military ties."
Economic Times
25 minutes ago
- Economic Times
Finance ministry's expenditure finance committee to take up ₹2,250-cr export promotion mission
Synopsis The Finance Ministry will soon consider a proposal from the Commerce Ministry. The proposal involves setting up a ₹2,250 crore export promotion mission. This mission aims to boost exports. It will likely include credit schemes for MSMEs and e-commerce exporters. Overseas warehousing and global branding are also planned. This initiative is crucial due to US tariffs on Indian goods. TIL Creatives Representative Image New Delhi: The finance ministry's expenditure finance committee will soon discuss the commerce and industry ministry's proposal to set up a ₹2,250 crore export promotion mission, an official said on Wednesday. The EFC is tasked with reviewing and approving spending proposals. The government had on February 1 announced the setting up of the mission. It is likely to include easy credit schemes for MSMEs and e-commerce exporters, facilitation of overseas warehousing, and global branding initiatives to tap emerging export opportunities."The committee, under the finance ministry, will soon take up the proposal. After its approval, it will go to the Cabinet," the official said. The aim to grow exports has gained criticality with the US announcing steep 50% tariffs on Indian imports. The commerce and industry ministry has since held several stakeholder meetings to understand the challenges being faced by exporters due to the high US tariffs. Sectors like textiles, chemicals, leather goods, and footwear are expected to be the hardest hit.
